Archive for the 'Energy' Category

Is There Really a McCain Policy?

Topic: Democrat Politics, Energy, Republican Politics| 2 Comments »

What does John McCain stand for? What is his platform? Every commercial I see from his campaign is always about Obama. I find it amazing this man has any support at all. I am challenging any McCain voter out there to tell me what policies he is running on. He says he will not raise taxes so how does he plan to run this country? If he doesn’t raise taxes and he wants to continue the Iraq War without paying for it will we continue to deficit spend to the tune of $400 billion a year? McCain is centering his energy policy on drilling for more oil. How is that going to revolutionize our dependence on foreign oil? The big question is what is the core feature of his platform? What are the three components of his platform that he will deliver within the first two years? To understand the nonsensical nature of McCain’s economic plan simply go to his campaign website and read his proposals. Most, in fact, are not really proposals at all. Take for instance this:  JohnMcCain2008.com. He talks about strengthening the dollar but doesn’t say how he plans on doing so. He also is going to tell foreign oil producing nations our dependence on foreign oil will come to an end. Is that a policy? Look how this is worded. Craziness. elephant_man McCain’s energy plan includes a $300 million prize for anyone who comes up with advanced battery technology. Obama plans to invest $150 billion in the next 10 years to advance technology in plug-in hybrids, promote development of commercial scale renewable energy, encourage energy efficiency, invest in low emissions coal plants, advance the next generation of biofuels and fuel infrastructure, and begin transition to a new digital electricity grid. Now that is a policy. Some would say the government should not be playing such a large role but we now know energy dependence is a national security issue and since when has the government not been involved in making us safer? Obama is honest. He says he plans on raising taxes. If it requires higher taxes to emasculate the Middle East and Venezuela then I am all for it. So I will be waiting for Republicans to tell me what McCain plans to do to solve the problems we now face. I won’t, however, hold my breath.

Removing the Thorn

Topic: Economics, Energy, Petroleum, Trade| No Comments »

Democrat, Republican, Conservative, Liberal, it doesn’t matter. On a day when oil prices rocketed to $140 a barrel based purely on speculation of future oil prices it is time to let your Congressmen know how you feel about this issue. You can guarantee I will be sending out some letters tonight.

From Wall Street Journal’s Marketwatch

Last update: 4:24 p.m. EDT June 23, 2008

Gas could fall to $2 if Congress acts, analysts say

Limiting speculation would push prices to fundamental level, lawmakers told

By Rex Nutting & Michael Kitchen, MarketWatch

WASHINGTON (MarketWatch) — The price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday.

Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.

Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters’ assessment at a hearing on proposed legislation to limit speculation in futures markets.

Read More

Getting Drilled

Topic: Energy, Petroleum| 6 Comments »

There is a wind these days and it is coming straight out of the garbage dump. Everyone reading this has smelled this retched odor. Gas hovers at or above $4.00 a gallon, depending on where you live and what does the right wing do? They exploit the misery. You could smell it coming. Drill ANWR and drill offshore. Even John McCain, Mr. Global Warming, has gotten into the act. The oil companies are making record profits at the expense of the American people and what do these representatives want to do? Hand them their fantasy scenario on a platter. We all know the recent rise in gas prices are not caused by supply and demand but by speculation. Experts claim as much as 70% of current prices are driven by oil speculators.

Hey, if supply was the issue and drilling was the answer then there would be no debate from here. But drilling only extends the debate into the future. This is why the Bush Administration is calling for it. It allows the current prices to continue and allows the oil companies to drill with impunity, a win-win for big oil and a lose-lose for America. It does nothing to change the playing field. The answer is to change the entire nature of energy in this country and then if we need to tweak our oil reserves we do so from strength.

The issue of drilling has become the leading talking point for Republicans. President Bush stuck his head out of the White House today and pressed the issue. All the Right Wing mouthpieces on radio and TV are touting the message and then you have this character. This should show you more than anything how much big oil has its tentacles around the GOP. As Rep. Issa politicizes the death of Tim Russert, this will leave you shaking your head:

Nouveau Black Friday

Topic: Economics, Energy, Middle East| 1 Comment »

 

Last week we saw McCain, Clinton and Obama all speak before AIPAC (American Israeli Public Affairs Committee). As a Presidential candidate, no matter your true feelings about Israel, it is imperative to have the Jewish lobby on your side. It is very similar to the fact you must proclaim to be Christian to be President of the United States (or hold significant office anywhere in the US). So there they were, all three, telling the group before them their intent to protect Israel. Even Obama promised to maintain Jerusalem in Israeli hands, an issue the Palestinians (and all Muslims) have a tough time swallowing. Jerusalem is, after all, the third most holy place in Islam. I have always contended that our marriage with Israel is bad foreign policy. By no means do I believe we should abandon the Jewish nation, but our overt support of the state over the Palestinians makes us less safe. Other than regional intelligence provided by MOSAD (the Israeli version of the CIA) Israel doesn’t offer much in the way of a strategic advantage for our support.

The danger of our commitment can easily be seen with what happened on Friday. Friday was a nexus of events and history that renders it significant. First off Friday was June 6th and for anyone who is worth their salt knows the day has historical relevance. June 6th was D-Day, the date the Allies stormed the beaches of Normandy in 1944 which began the liberation of Western Europe. D-Day is perhaps a pertinent phrase for what happened in terms of the economy yesterday. I’ll let Steely Dan provide some appropriate background music.

Yesterday could be labeled a nouveau Black Friday. Gas prices shot up $10 per barrel on Friday in the wake of a $6 increase the day before as the price topped $138 at the end of trading Friday. This sent the stock market tumbling 400 points. What caused these events?

It was largely caused by a statement that came out of Israel.

Israeli Transport Minister Shaul Mofaz said, "If Iran continues with its program for developing nuclear weapons, we will attack it. The sanctions are ineffective." This statement along with the weakening dollar set Friday in motion.

This leaves us with a couple questions. First, what would be the results of an Israeli attack on Iran? And second, why are we, the most powerful nation on the planet, in a position where a second rate Israeli minister can affect the US economy in such a way?

Crude Awakening

Topic: Energy| 3 Comments »

 

Oil prices have put energy front and center on the world’s stage. As record prices continue week after week, day after day the confrontation with an energy present and future are on the minds and mouths of many. oil addiction

In Europe oil protests erupted this week. Truckers in London blocked a major artery into the capital on Tuesday. They are putting pressure on PM Gordon Brown to act. Diesel runs at more than $9.00 a gallon there and unleaded gas costs $8.61. The British impose a $3.77 a gallon fuel duty and a 17.5% on top of that. This policy was intended to increase the use of pubic transportation. Many in England these days are questioning the taxes in the wake of surging gas prices.

 

In France, farmers and fishermen have been protesting for two weeks. They have blocked access to fuel refineries in several locations to display their anger at rising oil prices.

Countries on the edge of poverty such as Mongolia face crippling decisions. People in the harsh climate there are facing decisions between starving or staying warm. As food prices and energy costs run along parallel lines, these decisions aren’t always an either or proposition. In Indonesia rising oil prices have caused riots forcing the government there to subsidize energy costs to prevent an economic collapse.

Since we are dealing with an international crisis there is very little a single nation can do, especially those in the Third World.

Interestingly (and economically viable) the major Western nations are seeing a reduction of demand as oil prices are causing a shift in energy habits. China however has chosen to heavily subsidize fuel prices until after the Olympics, resulting in steady fuel prices there. A billion disgruntled Chinese wouldn’t be a pretty picture for the world’s cameras, especially in combination with the aftermath of the earthquake that hit Sichuan earlier this month.

The price is rising at a much greater clip than normal supply and demand would warrant. OPEC in fact says that the rise is due in large part to oil speculators. OPEC claims there is plenty of oil but they are nearing capacity. Investors claim the surge in speculator activity is attributable to the decline in other sectors such as real estate. The speculators are merely looking for more profitable investments. Without the recent speculation gas would be closer to $50 or $60 a barrel as opposed to $130 a barrel as it sits today.

 

Whereas the 2004 US presidential election centered on the Iraq War and security, the 2008 version may well pivot on energy costs. $5.00 gas is on the horizon and many are frightened of the prospect this summer. And as we know fear is a powerful political tool.

The True Appeaser

Topic: Energy, History, Middle East, Petroleum| 1 Comment »

The credit for the following belongs greatly to my old man.

 

As Bush spoke in front of the Knesset this week he invoked the preface to WW II. I have thought a lot the past few days about the idiotic comments of perhaps America’s most idiotic president and would like to set the record straight for a man who most likely doesn’t read a lot of history.

When Chamberlain met with Hitler in 1938, Britain was trying desperately not to be plunged into another war; a war they were in no way prepared for nor had the stomach to initiate. WW I was still fresh on their minds and the bad taste the Great War left in their mouths made them less powerful. As the Prime Minister of Britain met with the Chancellor of Germany it was from a position of weakness. The British military (navy excluded) had been downsized in the decades following 1918 and the army they did have was spread all over their empire. By 1938 the Germans had long since defied the Versailles Treaty and were on a war economy. These two powers were going in separate directions. Germany was meeting from a position of strength and Britain was meeting from a position of weakness.

If Obama or McCain sits down with Iran, North Korea, Cuba, Venezuela, Hamas or any other two bit dictator they will not be Chamberlain. The US spends well over $400 billion a year on its military. In 2005 the US military budget was nearly as much as the rest of the world COMBINED and eight times larger than China’s defense spending. This just shows you how much of an idiot Bush is for making that same old sad WW II analogy of appeasement. Bush Saudi To make matters worse, this same President proceeds to Saudi Arabia, a country who requires our military technology to keep their people in line, and begs them if they could do us a favor and up the oil production. Our allies in the Gulf merely brush the President of the free world aside like a bum on the curb with a tin cup. Most conservatives would tell the bum to go get a job. Well I’m telling the bum to get working on an energy policy where we don’t have to be beholden to any dictator. Who is the true appeaser?

_____________________________________________

 

My new bumper sticker for the week:

Purge your Sins, Conservatives. Vote Obama

Drugs, Oil and Hugo Chavez

Topic: Energy, South America, Western Hemisphere| No Comments »

The demise of Hugo Chavez should be a goal of the United States. This left wing nut and compadre to Fidel Castro has revealed he wants to destabilize South America. In a recent attack carried out by Columbian forces, a Fuerzas Armadas Revolucionarias de Columbia (or FARC) top commander  was killed along with several of his supporters. FARC Columbia reports there were documents recovered that revealed the Venezuelan president has bankrolled the terrorist group and there was reportedly information the group was attempting to obtain uranium. The validity of this information may be questioned but Hugo Chavez publicly mourned the death of the slain FARC leader, Raúl Reyes. Hugo Chavez has also colluded with Ecuadorian President Rafael Correa in condemning the attack. The FARC are among the most notorious rebels in South America. In Robert Kaplan’s 2005 book, Imperial Grunts, he writes about the FARC:

The FARC, with its seventeen thousand or so fighters, no longer represented the shaggy haired university idealists of the Cold War era, but a criminal army built on the forced recruitment of teenage boys and girls, in which desertion led to the slaughter of one’s family. FARC leader Manuel Marulanda, perhaps the world’s oldest living guerrilla, might still have harbored ideals. But with an income variously estimated at $500 million annually in protection money and cocaine business, the FARC was Karl Marx at the top and Adam Smith all the way down the command chain. (p.50)

It is reported that Arabs militants such as Hamas and Hezbollah are being funded by the Chavez government. Chavez is also providing secure zones for FARC from which they are trying to destabilize democratic Columbia. The US military has redoubled its efforts in Columbia under President Bush in a policy known as Plan Columbia which began in 2001. The plan has brought a level of stability to Columbia by putting pressure on rebel groups such as FARC and FLN (National Liberation Army), driving the drug trade further underground and also giving President Álvaro Uribe some breathing room. Uribe has an 80% approval rating in his own country, the highest in his five years as President. Chavez has recently called Columbia the Israel of South America because of US’s involvement there. chavez_castro However, Chavez’s own situation in his country has grown tenuous. Anti-FARC protests are common in Venezuela. Their brutal tactics are well known throughout the region. Since the cross border attack, Chavez has ordered troops to the border with Columbia but most see it as bluster since Chavez may not have the support of his generals to do anything drastic. Chavez is a menace and President Bush has done the right thing in bolstering Columbia’s democracy. 

America imports nearly 15% of its oil from Venezuela. Everywhere you turn it appears the snakes are rattling around the barrels. It is a further indication of the need of this country to unify around a policy that rids us of foreign oil. In the meantime Chavez’s popularity in Venezuela has waned and the US should do whatever it can to show this pariah the door.

Finding FARC

Chavez’s War Drums

Columbia Stands as a Beacon of Hope

Venezuela Mobilizes Forces to Columbian Border

Rumours of War

Kiev in the Cold

Topic: Energy, Europe, Trade| No Comments »

russia gas Every winter we hear about little old ladies who can’t afford their energy bill and live in small cold apartments. Well, it appears the Ukraine is playing that role these days. Russia’s energy company Gazprom has reduced the flow of natural gas to the Ukraine by 25% because of a delinquent bill. The former Soviet Republic owes Russia $600 million. russia_gasexp_tbl The Ukraine, by far the largest importer of Russia’s natural gas,  has promised to pay the bill but says the reduction in gas output from Russia is not a major issue since the winter in that generally cold nation has been mild. Some believe Russia’s move was meant to show the region that she plans on continuing Putin’s strong hand. Russia and the Ukraine have a long history of tension culminating in Stalin’s decimation of the population of this largely agricultural country in the 1930s when he starved between seven and nine million Ukrainians after they failed to embrace his policies.

The closing of the oil spiket comes on the heels of the election in Russia of a new President, Dmitry Medvedev, who promises to have a more aggressive foreign policy. Anti-government rallies and dissent have been quashed in the wake of the election. Opposition parties have vocally referred to the election as a sham. Protests from  pro-Putin youths known as the Nashi rallying in front of the US Embassy against the occupation of Iraq and the US’s recognition of Kosovar independence were allowed to commence. Russia  historically has had strong ties with Serbia, the Baltic nation that recently lost the mostly Muslim state of Kosovo. Russia, no stranger to aggression throughout its long history, continues to flex its muscle in the region. The Cold War may be in the history books but that does not mean Russia as a Eurasian power has faded as well.

Amy

Topic: Energy| No Comments »

Tonight I’m going to move away from all things political and present you with a concert from London featuring the great Amy Winehouse. It will surely please all, young and old. If you have good speakers on your computer, turn em up. Enjoy.

AmyWinehouse

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Ok, I couldn’t leave well enough alone tonight. You may remember when the President of Iran came to New York and spoke at Columbia University with great fanfare and suspicion. During that speech you might recall him talking about sexual orientation in his country:

Soon, however, the temptations of the Big Apple proved too much even for the one who denies the Holocaust.

I-Ran

Black Gold and the Ballot Box

Topic: Energy| 2 Comments »

Posted by JadedSage

oil men

Energy policy is a significant issue for the upcoming election. Rising gas prices effectively puts great amounts of money into the coffers of regimes such as Saudi Arabia who in turn fund the spread of Wahhabism throughout the world. How we address our energy needs in the future will determine not only the welfare of the planet but also the duration of conflicts in the Middle East.

A recent New York Times article outlines how the 2008 candidates for President stand on the issue of energy policy:

Candidates Offer Different Views on Energy Policy

By EDMUND L. ANDREWS

Published: November 28, 2007

WASHINGTON, Nov. 27 — As oil prices flirt with record highs, hovering around $95 a barrel on Tuesday, the Democratic and Republican presidential candidates are offering few quick fixes but profoundly different long-term approaches to energy policy.

Over the next decade or two, the differences could have a major effect on billions of dollars in government spending, on the relative prices of gasoline versus renewable fuels and on the efficiency of American cars and trucks.

For Democrats, the goal of energy policy is largely about reducing oil consumption and has become inseparable from the goal of reducing the risk of climate change.

For the Republican candidates, energy policy is primarily about producing more energy at home — more oil and gas drilling on the Outer Continental Shelf and in the Arctic National Wildlife Refuge; more use of American coal to produce liquid fuel; and, as with Democrats, more renewable fuels like ethanol.

By contrast, all of the Democratic candidates would repeal billions of dollars in tax breaks for oil companies, spend billions more each year to develop alternative fuels, and require cars and trucks to be far more fuel-efficient.

Indeed, most of the Democratic rivals are proposing plans that are more aggressive than the bills that Democratic leaders in Congress are hoping to pass before year-end. The disparity raises questions about whether the candidates’ plans are politically realistic. The candidates, however, are quietly acknowledging limits to what they can offer in the way of immediate relief, aside from putting more money into a program that helps low-income people with the cost of heating oil.

“There are no short-term solutions,” said Leo Hindery, the chief economic adviser to John Edwards, the former senator from North Carolina who has positioned himself to the populist left of his principal Democratic rivals.

The Republican contenders, maintaining the traditional conservative approach of relying on market forces, are much more reluctant to impose change through restrictions on oil and coal or mandates for alternative fuels.

“The truth is that the answer to high prices is high prices,” said R. Glenn Hubbard, a top economic adviser to Mitt Romney, the former Republican governor of Massachusetts. “This is one area where the public expects more from politicians than politicians can deliver.”

To be sure, the party contrasts are muddled in some areas.

Among the Democrats, Senator Barack Obama of Illinois supports the development of coal-based “clean” liquid fuels — an idea that grates on many environmentalists who see coal as a major contributor to global warming. Senator Obama also is open to government support for nuclear power while Senator Hillary Rodham Clinton has said she is agnostic on the issue.

Within the G.O.P. group, Senator John McCain of Arizona has broken with the Republican orthodoxy on increasing energy production. Senator McCain repeatedly opposed oil and gas drilling in the Arctic National Wildlife Refuge, a top goal for both President Bush and Republican leaders in Congress.

Likewise, Senator McCain and Mike Huckabee, the former governor of Arkansas, are the only Republican candidates to support mandatory limits on emissions of greenhouse gases. Mr. Huckabee, who has positioned himself as a standard-bearer for social conservatives and Christian evangelicals, recently called action on climate change a “moral issue.”

Manik Roy, a lobbyist for the Pew Center on Global Climate Change, said the Republican candidates may be more divided than they appear about controlling greenhouse emissions.

Mr. Romney, for example, said he opposed government restrictions. As governor of Massachusetts, he stayed out of a regional “cap and trade” plan by Northeastern states to impose ceilings on emissions by electric utilities and let companies trade their emission allowances.

But shortly after he made that decision, his state regulators imposed their own restrictions on such emissions.

For consumers, the precise effects are difficult to predict. Democratic mandates to sharply increase the use of renewable fuels could initially lead to higher prices at the gas pump, much as the mandate to blend ethanol into gasoline contributed to higher prices in 2005.

But over time, a large expansion of biofuels could both reduce their own production costs and put downward pressure on oil prices. Much would depend on how fast new technologies, like ellulosic ethanol, become practical on a large scale.

The Republican proposals to expand domestic oil and gas drilling could damp oil prices, though not for at least five years because of the long lead times to discover and develop new reserves. Likewise, Republican support for coal-based liquid diesel fuel could eventually drive down prices for gasoline. But without expensive and still unperfected technology to capture carbon dioxide, such liquids would increase the production of carbon dioxide, which most scientists say would aggravate global warming.

At the same time, Republican proposals to encourage more oil and gas drilling, and the candidates’ reluctance to require lower greenhouse emissions, could boomerang by prolonging what President Bush has called the nation’s addiction to oil.

Though they differ on the details, the Democrats all closely link the goals of “energy independence” and slowing global warming.

Most of them would create a cap-and-trade program, under which the government would set a ceiling on carbon emissions and require companies that burn fossil fuels to bid for carbon permits through an auction. The ceilings would be steadily lowered over the coming decades, with a goal of reducing carbon emissions as much as 80 percent below current volumes.

But for Republicans, energy policy is quite separate from the issue of climate change — and some of the candidates have been skeptical that global warming needs to be addressed.

The Republican candidates have mostly been silent about repealing tax breaks for oil companies. Though all the candidates support investment in biofuels like ethanol and biodiesel (Iowa, after all, dominates the early primary race in both parties), most of the Republicans oppose mandatory restrictions on carbon dioxide emissions that would effectively penalize the use of oil and coal.

In a written response to questions about his energy positions, Mr. Romney said on Friday that “now is not the right time to raise taxes on our oil companies” and expressed doubt about requirements to reduce carbon dioxide emissions.

“While it is likely that human activity is contributing to climate change, I am not sure how much, or what we can do to significantly reduce or reverse this effect,” Mr. Romney wrote. Any new mandates for renewable fuels should be “a collaborative effort between industry, scientists, and the agriculture and energy communities.”

By contrast, the leading Democratic presidential candidates have jumped ahead of their own colleagues in Congress — possibly too far ahead to be politically realistic.

In Congress, for example, Democratic leaders have coalesced behind a cap-and-trade proposal under which the government would initially give away about half the carbon-emission allotments to the factories and electric utilities that would need them, granting them a large subsidy to help pay for future investments. But most of the Democratic candidates insist that companies should bid for all the allotments in an auction and pay for them, which would raise much more money for the government.

The Democratic candidates are also running ahead of their counterparts in Congress on fuel economy. The Senate recently passed a bill that would increase the average fuel economy of cars and light trucks to 35 miles per gallon by 2017. The current requirement is 27.5 miles per gallon for cars and 21.3 miles per gallon for pickups, sport utility vehicles and minivans.

Most of the Democratic candidates would go much further. Senator Clinton says she would require 40 miles per gallon by 2020 and 55 miles per gallon by 2030. Mr. Edwards favors 40 miles per gallon by 2016, and Gov. Bill Richardson of New Mexico wants to push to achieve 50 miles per gallon by 2020.

But those requirements could be impossible to pass. In the House, Democrats from Michigan and other car-producing states strenuously oppose even the Senate’s comparatively modest plan. After months of stalemate, House and Senate Democrats are close to agreeing on a compromise before Christmas.

NYT

 

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